Retail's AI revolution reshapes shopping and ads

Retailers are weaving AI, advertising, loyalty, and commerce into one connected experience.

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Sep 18, 2026

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Retail's AI revolution reshapes shopping and ads

Retailers are weaving AI, advertising, loyalty, and commerce into one connected experience.

In brief

Retailers are weaving AI, advertising, loyalty, and commerce into one connected experience. Retailers are no longer separating advertising, loyalty programs, and shopping. AI is becoming the glue that binds them together, and it's where the real growth is happening. Originally reported by Adweek.

Google opens AI shopping ahead of holidays

Google is rolling out AI performance insights, expanded checkout options, and conversational AI agents in YouTube ads. Retailers can now embed shopping directly into video without viewers leaving.

Howl's creator business finds new home

The commerce platform Howl sold its creator division to Connexity, owned by Taboola, in August after facing payment allegations. Howl will continue operating its core commerce business.

Kroger's ad business grows 24 percent

Kroger's ad business grows 24 percent

Kroger Precision Marketing grew profit 24% in Q2, its strongest growth since 2021. The ad business is offsetting slower core retail sales as grocery chains face margin pressure.

Kroger pulls Red Bull over pricing

Kroger removed Red Bull from all U.S. stores and fuel stations as CEO Greg Foran pushes back against brand price increases. The chain plans to stock more private label products instead.

Ad spending forecast jumps to 12.3 percent

The Interactive Advertising Bureau raised its 2024 ad spend forecast to 12.3% growth, up from 9.5%. Commerce media is expected to grow 13.6%, becoming a primary growth engine alongside social and streaming.

Sam's Club uses AI to predict next purchase

Sam's Club launched AI-powered predictive targeting using membership data and 400+ intent signals to identify high-value customers. A test with Procter & Gamble showed 2.3X marketing effectiveness and 94% accuracy in 12-month purchase predictions.

Consumers distrust AI shopping recommendations

A VML report found 82% of consumers have used AI, but 58% cross-check recommendations before buying and 33% won't let AI make purchases. Trust remains the biggest barrier to agentic commerce adoption.

“58% say they cross-check product recommendations generated by AI before purchasing”

Here's the gist

Retailers are no longer separating advertising, loyalty programs, and shopping. AI is becoming the glue that binds them together, and it's where the real growth is happening.

Read the original on Adweek

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